Sourcing and Procurement Case Studies
Transport Service Procurement
We have supported a major project to procure the long term requirements for transport services from a national supplier. This followed initial development of a procurement strategy and areas of potential commercial leverage to secure enhanced value for money. We have supported the client team to develop all supporting documents to the main gate business case, including risk, through-life management and investment appraisal. The authorising Minister was highly complimentary about the business case.
We developed the payment mechanism to be used, and in particular a gain-share mechanism to secure a share of any savings arising from future developments should these generate savings from the contractor's budget. This involved the development of an Excel model and mathematical formulas for the legal documentation.
We also developed a manpower planning tool for the deployment of personnel. The required numbers of staff and support resources had to respond to changes in the location of resources. The model used the pattern of shifts and manning of the available workstations at different locations based to show how many staff of different grades would be required.
The contract was signed on time and within the approved budget and is now successfully delivering the required services. The c£1bn long term project is generating substantial savings to the client over the previous arrangement.
Worldwide Programme to Improve Supplier Relationships
BCL was selected by a global airline to deliver a comprehensive programme to help it improve and develop its supplier relationships.
The initiative is designed to maximise the value of supplier contracts and increase effectiveness across the whole of the organisation, encompassing a huge variety of service and product providers from engineers and caterers to marketing and diversity specialists.
'Following a competitive tender process, we are pleased to announce that Berkshire Consultancy Limited has been contracted to help design and roll-out our 'Managing Supplier Relationships Programme'', said our client. 'The consultancy has an excellent record for helping organisations to improve customer services and increase productivity through improved business processes and more effective management of supplier relationships'.
As part of the programme, more than one thousand staff within the organisation with responsibility for managing supplier contracts across the globe, are expected to attend a two day workshop designed to develop the necessary skills needed to create and support healthy, mutually beneficial supplier relationships. Early feedback reported enhanced confidence to manage supplied services to time, performance and cost.
Procurement Transformation
Our consultant used the European Foundation for Quality Management framework to assess the effectiveness of the procurement Function within a major primary Care Trust. Within a very short period, our consultant had completed the capability review and identified improvement opportunities which were presented to the client in the form of a Strategy for Procurement. This included recommendations which would secure savings of 12% in discretionary spend and stronger governance for the commissioning of health care services.
Commodity Supplies and Services
A key northern County Council required a BCL consultant to undertake a sourcing options review of their stationery and educational supplies service. Our consultant undertook the review, defined the options and prepared an analysis of those options. The spectrum of options included delivering the service from within through to partnering with another County Council. We recommended that the Council enter into a deeper partnership and demonstrated the business advantages this would bring to the Council's strategic objectives.
For further information on our Sourcing and Procurement programmes please email mike.robinson@berkshire.co.uk or call a member of our team on 0118 932 3580.
